Snapshots of Food Industry News
Packaged food market to touch $50 billion by 2017
According to a study, India’s packaged food market is to see a quantum jump from $32 billion at present to $50 billion by 2017. This growth will mainly come from the ready- to eat segment. Food manufacturers have begun to manufacture new innovative food products and ready-to-eat processed food to keep up with the tastes of consumers. The most popular categories of packaged foods are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat, health products and drinks.
There has been a major shift in the food habits of people in the metros and about 79 percent households buy convenient instant foods. A survey carried out by industry body Assocham revealed that 76 percent of working parents, with children under five-years, serve easy-to-prepare meals at least 10-12 times per month. Since companies are launching new products or variants, all the time, it is attracting the urban population where the demand for packaged foods is 80 percent of the demand. Another trend seen is the preference of convenience foods. Over 76 percent of nuclear families and 79 percent of bachelors prefer convenience food as they do not like or find the time to cook. It is for this reason that the home delivery business model for cooked food has grown manifold.
Ravi Jaipuria to enter a value-added dairy segment
Ravi Jaipuria (RJ Corp) is PepsiCo’s South Asia’s biggest bottler and the company is also the largest Indian franchisee of KFC and Pizza Hut restaurants and has exclusive franchise rights for Costa Coffee. Jaipuria is now planning to buy a dairy plant to enter the highly unorganized Rs.3 lakh crore dairy sector. Not only will the company expand its Creambell ice cream brand but will also manufacture value-added dairy products such as cheese, butter, lassi, and yogurt. PepsiCo’s rival Coca-Cola is also firming up plans to enter the sector and ITC too has recently announced plans to introduce a range of value-added dairy products. Value-added dairy products constitute around 20% of the total dairy market presently, though branded products in this segment are still considered niche.
The Dairy sector in India is showing signs of heating up because people prefer to buy packaged yogurt and paneer now instead of making it at home. Despite the fact that India is the largest producer of milk consumption is low and the dairy diet can only increase through value-added products. According to the National Dairy Development Board (NDDB) demand for milk is likely to touch 200 million tonnes by 2022. Presently branded yogurt constitutes only 10 % of the market but is likely to have higher margins of 12-18 percent, including lassi. Nestle, Amul, Mother Dairy, Britannia, and DANONE have already jumped onto the niche dairy bandwagon and Jaipuria is to follow suit.
Nirmala Sitharaman meets WTO chief and Brazilian Ministers on Food Issue
Commerce Minister, Nirmala Sitharaman, recently met Roberto Azevedo, the WTO Chief, and Trade Ministers of various countries such as Brazil to find a permanent solution for food security issues and protection to poor farmers. A permanent solution was agreed upon at the Bali meeting and India would like delivery on that. The Minister also expressed upon the WTO chief the importance of the Doha Round. The WTO DG on his part said that he understood India’s wish not to use food security and the peace clause as a bargaining chip.
Sitharaman held deliberations with WTO Director-General Roberto Azevedo and explained to him about the importance of the conclusion of the Doha Round and permanent solution. She also explained the importance of special safeguard mechanism (SSM) to Brazil, which is an important member of G33, for protection of farmers of developing countries like India so farmers are protected from the surge in imports or dip in global commodity prices. Under SSM, developed countries want developing nations, including India, to agree to the SSM instrument when imports surge on a sustained basis by 40 percent over the previous year. India would like SSM to come into play if imports rise by 10 percent only.
Chhattisgarh’s Kabirdham District to have the new sugar factory
With a vision to promote agro-based industries, and improve the economic condition of the farmers, Chief Minister Raman Singh, recently laid the foundation stone for a new co-operative sugar factory. The factory will be constructed in Biseshar village of Pandaria block in the Kabirdham district of Chhattisgarh, at a cost of Rs.163.12 crore. The factory premises will spread over an area measuring about 80 hectares and will have a sugarcane crushing capacity of 2,500 metric tonnes. This will be the fourth cooperative model sugar factory in the state and second in Kabirdham district. This factory has been named after India’s ‘Ironman’ Sardar Vallabbhai Patel.
The CM distributed stock holding certificates and said that the real owners of the factory will be the more than 10,000 farmers in the region who hold stock. He hoped that this would encourage the farmers to take interest in sugarcane production apart from paddy cultivation. Notably, the sugar factory will also produce about 14 MW of power through biomass produced by the factory, which would be sufficient to power about 20,000 houses.
Dr. Jesto George has been appointed as Authorised Officer for Cochin port for clearance of imported food with effect from 9 December 2015.
The address of the Authorised Officer is given below
Dr. Jesto George (AO Cochin Port)
FSSAI regional Office –Southern Region
Ministry of Health & Family Welfare Government of India
First Floor. Marine Building, North End PO
Willingdon Island. Cochin -682003 Kerala
Phone No- 0484-2666256
Email- [email protected]
Shri. Doles P.E. Authorised Officer has been appointed as the Link Officer for
Dr. Jesto George and he will also discharge the function of AO in absence of Dr. Jesto George